FACTBOOK - asahigroup-holdings.com · Asahi Group Foods, ... Source : Euroland 2013 2014 2015 2016 2017 Share price B yenC ... Asahi Beer U.S.A., Inc. Lotte Asahi Co., Ltd

FACTBOOK

2018(Updated on February 28, 2018)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.1

Contents

Long-Term VisionMedium-Term Management Policy

23

24

Corporate Data

Financial and Management Indices

Group Businesses

Alcohol Beverages Business

Soft Drinks Business

Long-Term Vision / Medium-Term Management Policy

Medium-Term Management Policy …………………

2

3

Company Overview ……………………………………………

Stock Information ………………………………………………

Main Associate Companies ………………………………

Corporate Governance Structure ………………………

List of Group Production Facilities ……………………

Company History ………………………………………………

4

5

6

7

8

9

Consolidated Financial Statements (J GAAP / IFRS)

Asahi Group at a Glance ……………………………………… 12

Asahi Breweries, Ltd. …………………………………………

Beer-Type Beverages: Sales by Container Type and Market Channel ……………………………………………………

Sales Volume by Month in 2016 …………………………

Sales Volume by Month in 2017 …………………………

Domestic Alcohol Beverages Market Data ……………

Liquor Tax ……………………………………………………………

13

14

15

16

17

18

19

20

21

Food Business

Overseas Business

25

26

27

28

29

30

31

32

33

34

35

11

Asahi Soft Drinks Co., Ltd. ……………………………………

Sales by Asahi Soft Drinks ……………………………………

Domestic Soft Drinks Market Data ………………………

Asahi Group Foods, Ltd. ………………………………………

Domestic Food Business Market Data …………………

Overview of Overseas Business ……………………………

Global Beer Market ………………………………………………

Europe business (Italy, Netherlands, UK) ………………

Europe Beer Market (Italy, Netherlands, UK) …………

Europe business(Poland, Czech, Slovakia, Romania, Hungary) …………

Europe Beer Market(Poland, Czech, Slovakia, Romania, Hungary) …………

Oceania Non-Alcohol Beverages business ………………

Oceania Non-Alcohol Beverages Market ………………

Oceania Alcohol Beverages business ……………………

Oceania Alcohol Beverages Market ………………………

Southeast Asia Beverages business (Malaysia) /China business ………………………………………………………


Long-Term Vision / Medium-Term Management Policy

Long-Term Vision

Vision for Stakeholders

CustomersContinue to create new value based on strengths nurtured in Japan and achieve the No. 1 ranking for customer satisfaction in Japan and each region of the world.

Business partners

Develop relationships with our business connections and alliance partners that enable mutual growth through new value creation.

SocietyContribute to the resolution of social problems through the Group’s businesses in areas such as development of a wholesome food culture.

EmployeesDevelop an environment in which employees experience both personal and corporate growth and can work vigorously.

ShareholdersEnhance corporate value (equity value) through sustained profit creation and shareholder returns.

◆ Seek “sustained corporate value enhancement” by pursuing satisfaction for all stakeholders.

As a comprehensive beverage and food business group whose core business is alcohol beverages, aim to be an industry leader in Japan with high added value as a key area of focus and establish a unique position as a global player that leverages strengths originating in Japan.

◆ Striving to be a corporate group trusted around the world through the Kando of food (deliciousness, happiness and innovation)

Medium-Term Management Policy

Aiming at Further Development of Management for Corporate Value Enhancement

◆ Strengthening of earning power by positioning the domestic profit base as the cornerstone of earnings and the overseas business as a growth engine

・ Promote innovation and demonstrate leadership in the industry with high added value and differentiation as key areas of focus

・ Reform the earning structure and evolve business model through business integration and value chain sophistication

・ Acquire foundations for growth, mainly in overseas markets, leveraging strengths originating in Japan

◆ Asset and capital efficiency improvement that takes into consideration capital cost・ Improve capital efficiency with an emphasis on equity spread (ROE - cost of shareholders' equity)・ Restructure business administration and business portfolio utilizing ROIC (rate of return on

invested capital) as a performance indicator

◆ Reinforcement of ESG (environment, social, and governance) initiatives to increase sustainability

・ Upgrade intangible assets such as nature, social and relationship capital and personnel and develop them toward a CSV (creating shared value) strategy

・ Implement “growth-oriented corporate governance” that contributes to the practice of management to enhance corporate value


Medium-Term Management Policy

Key Performance Indicator (KPI) Concept and Guidelines

2017 Result Guidelines for next 3 years out

Revenue JPY 2,084.9 billionStable growth from existing businesses – Business restructuring + New M&As

Core Operating Profit JPY 196.4 billion CAGR : mid to high single digit

EPS (adjusted*) 262.2 yen CAGR : mid to high single digit

ROE (adjusted*) 13.7% Maintain 13％ or above

Financial and Cash Flow Strategy

Guidelines for next 3 years out

Cash FlowFCF : above 140 JPY billion (annual average)Impact of business restructuring : approx. 100 JPY billion (FY2018 forecast)

Debt ReductionNet debt / EBITDA : around 3 times by the end of FY2019Net D/E ratio : below 1 time by the end of FY2018

Investment for GrowthPrioritize strengthening financial structure and consider M&A for expansion of foundations for growth

Shareholder Returns Stable dividend increases with the aim of a dividend payout ratio of 30% *

*Core operating profit is the reference index for normalized business performance.Core operating profit = Revenue - (COGS + general administrative cost)

*Adjusted figures are calculated after the deduction of one off special factors including business portfolio restructuringand foreign exchange impact

Medium-Term Key Priorities by Business

◆Maintain high profitability and improve profitability as the Group’s largest cash cow business.

1) Demonstrate leadership in the industry in high added value and increase the profit pool of the industry as the No. 1 comprehensive alcohol

beverages company

2) Strengthen new value creation proposals through innovation and develop strong core brands in each category

3) Reform earnings structure through value chain upgrading and collaboration, and evolve business model including e-commerce

◆Realize growth with profit by establishing a differentiated position as the Group’s second mainstay business.

1) Establish a distinctive, prominent position centered on reinforcement of the brand power of core products

2) Add high value in response to consumer health consciousness and propose new value through innovation, including in the chilled beverages

business

3) Reform earnings structure such as maximization of integration synergies, sales channel and container mix improvement, and SKU reduction

◆Develop the Group’s next-generation foundations for growth by focusing on strengths and leveraging business integration.

1) Enhance brand value and strengthen high-added value product proposals through focus on existing categories where our strength lies

2) Create new value and demand through innovation that leverages business integration in areas such as foods with function claims

3) Reform earnings structure through focus on core competence creation of integration synergies, and value chain optimization

◆Expand the global foundation for growth leveraging strengths and drive the Group’s sustained growth.

1) Implement strategies for growth centered on brand reinforcement and development in existing businesses in Oceania, Southeast Asia, and other

regions

2) Reform earnings structure through means including expansion of integration synergies and restructure business portfolio by region

3) Acquire new foundations for growth by leveraging strengths originating in Japan, such as brand power and cost competitiveness

Alcohol

Beverages

Soft Drinks

Food

Overseas

*Adjusted profit attributable to owners of parent is used for calculation


Bond Ratings

Corporate Data (Company Overview)

Corporate Profile (As of December 31, 2017)

Bond IssuesFY2017 Revenue by Business

As of December 31, 2017

JPY denominated bond Issued Amount（Millions of yen）

Coupon

rate

Date of

maturity

2nd Corporate deventure Oct. 21, 2011 20,000 0.760% Oct. 19, 2018

4th Corporate deventure Jul. 13, 2012 10,000 0.547% Jul. 12, 2019



7th Corporate deventure May 28, 2015 25,000 0.237% May 28, 2020

8th Corporate deventure May 28, 2015 10,000 0.348% May 27, 2022

9th Corporate deventure Jun. 13, 2017 100,000 0.080% Jun. 12, 2020





Euro denominated bond Issued Amount（Millions of Euro）

Coupon

rate

Date of

maturity

senior unsecured bonds due 2021 Sep. 19, 2017 600 0.321% Sep. 19, 2021

senior unsecured bonds due 2025 Sep. 19, 2017 600 1.151% Sep. 19, 2025


Rating Agency Rating

Rating and Investment Information,Inc A＋

Japan Credit Rating Agency, Ltd. AA－

Moody's Baa2

Trade Name ：ASAHI GROUP HOLDINGS, LTD.

Head Office ：1-23-1, Azumabashi Sumida-ku, Tokyo 130-8602, Japan

Date of Establishment ： September 1. 1949

President and Representative Director, COO ：Akiyoshi Koji

Number of group companies ：A number of consolidated subsidiaries: 146

A number of companies subject to

application of the equity method: 19

Issued Capital ：182,531million yen

Revenue ：2,084,877 million yen (Consolidated / FY2017)

Number of Employees ：274 (Consolidated 30,864)

Security code ：2502

Stock Exchange Listings ： Tokyo Stock Exchange

Number of Shares of Common Stock Issued ：483,585,862

Unit amount of stocks ：100 shares

Number of Shareholders ：98,099

Transfer Agent and Registrar

Stock Transfer Agent： Sumitomo Mitsui Trust Bank, Limited

Fiscal Year-End Date ：December 31, on an annual basis

Annual General Meeting of Stockholders ：March

Total

2,084.9

Billion yen


Note: Treasury shares is included in “Individuals, others.”

Share Price Chart

Major ShareholdersShareholder Composition

Corporate Data (Stock Information)

Share Price Range

Source : Euroland

2013 2014 2015 2016 2017

Share price（yen）

Year High 2,967 3,871 4,380.5 3,912 5,810

Year Low 1,833 2,547 3,524 3,164 3,677

Number of issued stock（100 shares） 4,835,858 4,835,858 4,835,858 4,835,858 4,835,858

Treasury shares (100 shares) 213,525 209,840 256,762 254,535 254,617

EPS（yen） 135.7 148.9 166.3 194.8 307.8

Divedends per share（yen） 43.0 45.0 50.0 54.0 75.0

Number of shareholders 109,543 108,522 106,712 115,017 98,099

(As of December 31, 2017)

Number of Shares

(in thousands)

Percentage of

voting Rights(%)

37,956.6 8.3%

24,788.1 5.4%

The Dai-ichi Life Insurance Company, Limited 16,383.3 3.6%

Fukoku Mutual Life Insurance Company 15,500.0 3.4%

Asahi Kasei Corporation 11,785.3 2.6%

Sumitomo Mitsui Banking Corporation 9,028.0 2.0%

Sumitomo Mitsui Trust Bank, Limited 8,126.0 1.8%

8,015.6 1.7%

7,366.7 1.6%

6,991.7 1.5%

Total 145,941.3 31.9%

*Treasury shares of 25.46 mi i l ion shares i s excluded in preparing the l i s t of major

JPMorgan Securities Japan Co., Ltd.

JAPAN TRUSTEE SERVICES BANK LTD. (Trust Account 5)

STATE STREET BANK WEST CLIENT - TREATY 505234

The Master Trust Bank of Japan, Ltd.

(Trust Account)

Japan Trustee Services Bank, Ltd. (Trust Account)

Shareholder Name


Corporate Data (Main Associated Companies)

Asahi Beer (China) Investment Co., Ltd.

Beijing Beer Asahi Co., Ltd.

Yantai Beer Tsingtao Asahi Co., Ltd.

Asahi Holdings (Australia) Pty Ltd

Asahi Beverages Pty Limited

Asahi Premium Beverages Pty Ltd

The Better Drinks Co Limited

Independent Liquor (NZ) Limited

Asahi Food Create, Ltd.

NADAMAN CO., LTD.

ASAHI BEER FEED Co., Ltd.

Hokkaido Nikka Service Co., Ltd.

Sendai Nikka Service Co., Ltd.

Asahi Beer U.S.A., Inc.

Lotte Asahi Co., Ltd.

The Nikka Whisky Distilling Co., Ltd.

Sainte Neige Wine Co., Ltd.

Commissioned processing of malt

Alcohol beverage sales (U.S. and South Korea)

Alco

ho

l Beverages

Soft D

rinks

Foo

dO

verseas

Oth

er

Asahi Breweries, Ltd.

Asahi Soft Drinks Co., Ltd.

Calpis Co., Ltd.

Asahi Soft Drinks Sales Co., Ltd.

Asahi Orion Inryo Co., Ltd.

Asah

i Gro

up

Ho

ldin

gs, Ltd. (p

ure

ho

ldin

g com

pan

y) Asahi Group Holdings Southeast Asia Pte. Ltd.

Etika Beverages Sdn. Bhd.

PT Asahi Indofood Beverage Makmur

Asahi Loi Hein Company., Ltd

Asahi Group Foods, Ltd.

Asahi Beer Malt, Ltd.

Asahi Logistics Co., Ltd. East Japan AB Cargo Co., Ltd.West Japan AB Cargo Co., Ltd.

Asahi Draft Marketing, Ltd.

ENOTECA CO., Ltd

Asahi Calpis Wellness Co., Ltd.

(Southeast Asia)

(Oceania)

(China)

(Europe)

Alcoholbeveragesales

Guidance on draft beer maintenance services, etc. (outsourced)

Consignment production of low-alcohol beverages

Consignment production of soft drinks

Management of product transportation and distribution centers (outsourced)

Note: In addition to the above, Asahi Professional Management Co., Ltd. (a consolidated subsidiary) manages some of the key head office functions of Asahi Group companies in areas such as finance and IT as a holdings function company. It also handles indirect business services that are common to Group companies such as payroll, benefits and accounting, concentrating these services in one place and raising efficiency. Asahi Business Solutions Co., Ltd. (an equity method affiliate) undertakes IT related business on consignment for the entire Asahi Group. Asahi Beer Communications, Ltd. (an equity method affiliate) undertakes mainly the operations of factory tours in Asahi Breweries and Asahi Soft Drinks. Asahi Group Engineering Co., Ltd. (a consolidated subsidiary) designs and produces manufacturing equipment.

Schematic Diagram of the Asahi Group’s Main Companies and Businesses (As of December 31, 2017)

Asahi Europe Ltd

Birra Peroni S.r.l. (Italy)

Asahi Netherlands B.V. (Netherlands)

Asahi UK Limited (UK)

Meantime Brewing Company Limited (UK)

Asahi Breweries Europe Ltd

Asahi Poland BV (Poland)

Plzeňský Prazdroj (Czech Rep.)

Pivovary Topvar (Slovakia)

Ursus Breweries SA (Romania)

Dreher Sörgyárak Zrt. (Hungary)

Restaurant business


Corporate Data (Corporate Governance Structure)

Nomination Committee 4 Outside directors: 2

Compensation Committee

4 Outside directors: 2

Corporate Governance Structure (As of December 31, 2017)

Compensation for Directors and Audit & Supervisory Board Members (FY2016)

Directors 10 Outside directors: 3

Audit & Supervisory Board Members

5 Outside auditors: 3

Corporate Officers 14 Five double as directors

(Millions of yen)

Bas ic amout Bonuses Total

Internal Directors (9 directors ) 289.7 129.9 419.6

Outs ide Directores (4 directors ) 44.4 1.2 45.6

Internal Audit & Supervisory Board Members

(3 auditors)65.6 - 65.6

Outside Audit & Supervisory Board Members

(3 auditors)33.7 - 33.7

Note: Based on the Integrated Report 2016


Number of Production Bases in Overseas Subsidiaries (As of December 31, 2017)

Corporate Data (List of Group Production Facilities)

Number of Production Bases in Domestic Subsidiaries (As of December 31, 2017)

Europe Southeast Asia ChinaWestern Europe beer business : 5 breweries Etika Alcohol Beverages business : 2 breweries

Italy : 3, Netherlands : 1, UK : 1 Soft Drinks business : 5 factories China : 2

Malaysia : 3, Indonesia : 1, Vietnam : 1

Central Europe beer business : 11 breweries OtherPoland : 3, Czech : 3, Slovakia : 1, PT Asahi Indofood Beverage Makmur Calpis

Romania : 3, Hungary : 1 Soft Drinks business : 19 factories Soft Drinks business : 2 factories

Indonesia : 19 Indonesia : 1, Thailand : 1

OceaniaSoft Drinks business : 8 factories Asahi Loi Hein

Australia : 7, New Zealand : 1 Soft Drinks business : 1 factory

Alcohol Beverages business : 2 breweries Myanmar : 1

Australia : 1, New Zealand : 1


Corporate Data (Company History 1889–2004)

■M&A, Equity Participation, Business Alliance etc. ■New product launch

Year Month Main Events

1889 Nov.Osaka Breweries, Ltd., the predecessor of Asahi Breweries, Ltd., is established. Japan Beer Brewery, Ltd. and Sapporo Beer Co. are also

established around this time.

1891 Oct. The Suita-mura Brewery, now Asahi Breweries’ Suita Brewery, is completed.

1892 May Asahi Beer is launched.

1897 July The first Asahi House beer hall opens for business.

1900 Asahi Beer wins the title of best beer at the Paris Expo.

1906 Mar. Dai Nippon Breweries, Co., Ltd. is jointly established by Osaka Breweries, Japan Beer Brewery, and Sapporo Beer Co.

1930 May EBIOS , a pure brewer’s yeast tablet, is introduced.

1944 Dai Nippon Breweries spins off i ts pharmaceutica l divis ion to form Dainippon Vitamin Co., Ltd. (now Asahi Food & Healthcare Co., Ltd.).

1949 Sep. Asahi Breweries, Ltd. is established, and Tamesaburo Yamamoto is appointed the company’s first president.

Dai Nippon Breweries Co., Ltd. is divided into Asahi Breweries, Ltd. and Nippon Breweries, Ltd. upon enactment of the Economic Decentralization Act.

1954 Aug. Asahi invests in Nikka Whisky Distil l ing Co., Ltd.

1972 Mar. Mitsuya Vending (now Asahi Soft Drinks Co., Ltd.) is established.

1980 Nov. Asahi acquires the trademark right to the Bireley’s brand.

1982 Nov. Asahi signs a collaborative business agreement with Löwenbräu AG of Germany.

1983 Jan. Asahi acquires the trademark right to the Wilkinson carbonated drink.

1985 Oct. Asahi announces the introduction of its corporate identity (CI) program.

1986 Feb. New Asahi Draft Beer ,distinguished by its rich and crisp taste, is launched.

Mar. Tsutomu Murai becomes chairman, and Hirotaro Higuchi takes office as president.

1987 Mar. Asahi Super Dry , Japan’s first dry draft beer, is launched. It is a megahit product that revolutionizes the beer industry.

1988 July Asahi Beer Winery (now Sainte Neige Wine Co., Ltd.) is established.

Oct. Asahi Beer Soft Drink Manufacturing Co., Ltd. (now Asahi Soft Drinks Co., Ltd.) is established.

1989 Jan. The company is renamed Asahi Breweries, Ltd.

1990 Sep. Asahi Beer Soft Drinks Co., Ltd. (now Asahi Soft Drinks Co., Ltd.) is established.

1992 Mar. Asahi Beer Food, Ltd. (now Asahi Food & Healthcare Co., Ltd.) is established.

Sep. Hirotaro Higuchi becomes chairman, and Yuzo Seto takes office as president.

1993 Mar. The pioneering blend tea Asahi Ocha Dozo Jurokucha is launched.

1994 Jan.Asahi acquires stakes in three Chinese beer companies and signs technical and licensing agreements with each of them. This marks its

full-scale entry into the Chinese market.

Mar. Asahi Beer Pharmaceutical Co., Ltd. (now Asahi Food & Healthcare Co., Ltd.) is established.

1995 Dec. Asahi and Itochu Corporation jointly acquire the management rights for Beijing Beer Asahi Co., Ltd. and Yantai Beer Asahi Co. Ltd.

1996 Apr. The Asahi Beer Oyamazaki Vil la Museum of Art is opened.

July Asahi Soft Drinks Co., Ltd. commences operations as a manufacturer and distributor of soft drinks.

1997 Sep. WONDA, a new-generation canned coffee, is launched.

Dec.Asahi, in cooperation with China’s Tsingtao Brewery Co., Ltd. and others, establishes Shenzhen Tsingtao Beer Asahi Co., Ltd. and starts

work on brewery construction.

1998 Apr. Asahi Beer U.S.A., Inc. is established.

May The Asahi Breweries, Ltd. Europe Branch is established.

Dec. Asahi claims the top market share in domestic beer sales.

1999 Jan. Yuzo Seto becomes chairman, and Shigeo Fukuchi takes office as president.

Aug. Asahi Soft Drinks Co., Ltd. is l isted on the Tokyo Stock Exchange, First Section.

Sep. The medium-term management plan “Asahi Innovation Program 2000” is announced.

2000 Feb. Asahi introduces an executive director system.

2001 Feb. With the launch of Asahi Honnama happoshu, Asahi enters the low-malt beer market.

Apr. The sales departments of Asahi and Nikka Whiskey Distil l ing Co., Ltd. are merged.

Dec. Asahi claims the top market share in domestic beer/happoshu sales.

2002 Jan. Shigeo Fukuchi becomes chairman, and Kouichi Ikeda takes office as president.

Feb. In cooperation with Boon Rawd Brewery, Asahi starts local production of Asahi Super Dry in Thailand.

July Asahi Beer Food, Ltd. and Asahi Beer Pharmaceutical Co., Ltd. are merged to form Asahi Food & Healthcare Co., Ltd.

Aug. Asahi enters a comprehensive business all iance with Orion Beer Co., Ltd.

Sep.Asahi acquires the alcoholic beverage businesses of Kyowa Hakko Kogyo Co., Ltd. and Asahi Kasei Corporation, and concludes a

contract for a strategic marketing all iance with Maxxium Japan K.K.

Oct. WONDA Morning Shot canned coffee is launched.

Dec. Smile Support, Ltd. (now Asahi Field Marketing, Ltd.) is established.

2003 Jan. Asahi Food & Healthcare Co., Ltd. acquires Pola Foods Inc.

2004 Feb. Asahi Group’s second medium-term management plan is announced.

Apr. Asahi establishes a joint venture in the beverage business with China’s Tingyi (Cayman Islands) Holding Corp.

July Haitai Beverage Co., Ltd. becomes a consolidated subsidiary.

Nov. Asahi invests in the alcohol beverage sales company of South Korea’s Lotte Group to establish Lotte Asahi Liquor Co., Ltd.


Corporate Data (Company History 2005–2017)

■M&A, Equity Participation, Business Alliance etc. ■New product launch

Year Month Main Events

2005 Apr. Asahi enters the new-genre beer market with its launch of Asahi Shin-Nama .

May, June Asahi acquires the s tock of chi l led beverage makers LB Co., Ltd. (Sa i tama) and LB Co., Ltd. (Nagoya) from Kanebo Cosmetics , Inc.

Sep. Sainte Neige Wine Co., Ltd. and Asahi Beer Winery are merged.

2006 Jan. Nikka Whiskey Distil l ing Co., Ltd. and Asahi Kyowa Brewery Co., Ltd. are merged.

Distribution subsidiaries are reorganized and business regions are merged. Asahi Logistics Co., Ltd. and two large-scale

transportation companies are established.Mar. Kouichi Ikeda becomes chairman, and Hitoshi Ogita takes office as president.

May Asahi acquires the stock of Wakodo Co., Ltd., Japan’s largest baby-food maker.

2007 Feb. Asahi Group’s third medium-term management plan is announced.

A business and capital all iance is formed with Kagome Co., Ltd.

Mar. Asahi Style Free happoshu is launched.

Apr. Wakodo Co., Ltd. becomes a wholly owned subsidiary.

Dec.Asahi Soft Drinks Co., Ltd. and Calpis Co., Ltd. establish joint venture Asahi Calpis Beverage Co., Ltd. to manage their vending

machine operations.

2008 Mar. Clear Asahi , a new-genre beer (no-malt beer), is launched.

Apr. Asahi Soft Drinks Co., Ltd. becomes a wholly owned subsidiary.

June Asahi acquires the stock of Amano Jitsugyo Co., Ltd., Japan’s largest maker of freeze-dried foods.

Nov. Asahi concludes a capital tie-up agreement with Yantai Beer Asahi Co., Ltd. and Tsingtao Brewery Co., Ltd.

2009 Feb. Asahi Off , a new-genre beer, is launched.

Apr. Asahi acquires a 19.99% stake in Tsingtao Brewery Co., Ltd.

Asahi purchases Schweppes Australia Pty Limited from the United Kingdom’s Cadbury Group.

Dec. Asahi’s Long-Term Vision 2015 and Medium-Term Management Plan 2012 are announced.

2010 Mar. Hitoshi Ogita becomes chairman, and Naoki Izumiya takes office as president.

Asahi drafts its “Environmental Vision 2020” and “Biodiversity Declaration.”

Asahi begins full-scale development of Asahi Super Dry “Extra cold.”

Apr. Asahi concludes an agreement to purchase the mineral water business of House Foods Corporation.

Aug. Asahi concludes an agreement to purchase shares of P&N Beverages Australia Pty Limited.

Nov. Asahi acquires a 6.54% stake in Ting Hsin Group, one of China’s largest packaged food and distribution groups.

Dec. Asahi concludes an agreement to acquire the Rokujo Mugicha brand from Kagome Co., Ltd.

2011 Jan. Asahi concludes an agreement to sell its stake in Haitai Beverage Co., Ltd.

June Asahi becomes a pure holding company and changes its name from Asahi Breweries, Ltd. to Asahi Group Holdings, Ltd.

Aug. Asahi concludes an agreement to sell its stakes in Hangzhou Xihu Beer Asahi Co., Ltd. and Zhejiang Xihu Beer Asahi Co., Ltd.

Sep. Asahi acquires all stock in Flavoured Beverages Group Holdings Limited, a major New Zealand alcohol beverage company.

Sep. Asahi acquires all stock in Charlie’s Group Limited, a New Zealand beverage company.

Sep. Asahi acquires the mineral water and fruit juice businesses of P&N Beverages Australia.

Nov. Asahi acquires all stock in Permanis Sdn. Bhd., a Malaysian beverage company.

2012 Jan. Asahi acquires all stock in Mountain H2O Pty Ltd, an Australian beverage company.

Feb. Asahi Dry Zero, a new beer-taste non-alcohol beverage, is launched.

Apr. Asahi Super Dry—Dry Black , a new black beer, is launched.

July Asahi and PT Indofood CBP Sukses Makmur Tbk establish two joint ventures to manufacture and distribute soft drinks in Indonesia.

Oct. Asahi acquires all stock in Calpis Co., Ltd., Japan’s largest maker of fermented lactic beverages.

2013 Feb. Asahi’s Long-Term Vision 2020 and Medium-Term Management Plan 2015 are announced.

JuneAsahi concludes a contract with Osotspa Co., Ltd. to establ ish a joint venture to manufacture and dis tribute Calpis brand beverages

in Thai land.

Sep. Asahi acquires all stock in PT Pepsi-Cola Indobeverages, a bottler for the PepsiCo Group in Indonesia.

2014 Feb. Full-scale development of Asahi Super Dry—Dry Premium begins.

Apr. Asahi concludes an agreement to purchase the Southeast As ian dairy product bus iness of Etika International Holdings Limited.

2015 Mar. Asahi acquires all stock in Enoteca Co., Ltd., retailer and importer of wine in Japan.

July Asahi formulates Corporate Governance Guidelines.

2016 Jan.Asahi consol idates the non-refrigerated beverage bus iness into Asahi Soft Drinks . Asahi Ca lpis Wel lness Co., Ltd. succeeds the

functional foods bus iness (mai l -order bus iness , functional raw materia l ) and animal feed bus iness of the Calpis Co., Ltd.

Asahi consolidates the food businesses (Asahi Food & Healthcare, Wakodo, Amano Jitsugyo) into newly established Asahi Group Foods, Ltd.

Feb. Asahi's Long-Term Vision and Medium-Term Management Policy are announced.

Mar. Naoki Izumiya becomes chairman, and Akiyoshi Koji takes office as president.

Asahi introduces a new Performance-Linked Stock Compensation Plan for the Directors of the Company.

Oct. Asahi acquires the Peroni, Grolsch, Meantime and related business of SAB Miller from AB InBev.

2017 Mar. Asahi acquires the businesses in Central and Eastern Europe and related business of SAB Miller from AB InBev.

Jun. Asahi concludes an agreement to sell its all stock in Tingyi-Asahi Beverages Holdings Co., Ltd.

Nov. Asahi concludes an agreement to sell its all stock in LB Co., Ltd.

Dec. Asahi concludes an agreement to sell its all stock in Tsingtao Brewery Co., Ltd.

Asahi concludes an agreement to sel l i ts a l l s tock in PT Asahi Indofood Beverage Makmur and PT Indofood Asahi Sukses Beverage,

the Indones ia ’s joint venture bus iness


Consolidated Financial Statements (J GAAP / IFRS)

J GAAP 2011 2012 2013 2014 2015 IFRS 2016 2017

Consolidated Statements of Income (Mill ions of Yen) Consolidated Statement of Profit or Loss (Mill ions of Yen)

Net sales 1,462,736 1,579,077 1,714,237 1,785,478 1,857,418 Revenue 1,706,901 2,084,877

Cost of sales 907,243 974,702 1,032,853 1,073,439 1,100,519 Cost of sales 1,098,173 1,295,399

(Liquor tax) (414,327) (421,953) (423,332) (426,453) (422,941) (Liquor tax) (422,941) (495,494)

Gross profit 555,493 604,375 681,383 712,039 756,899 Gross profit 608,728 789,477

Selling, general and administrative expenses 448,303 495,937 563,916 583,733 621,779 Selling, general and administrative expenses 460,241 593,108

(Goodwill amortization) (8,905) (13,991) (18,449) (19,474) (16,271) Amortization of acquisition-related intangible

assets(6,249) (19,199)

Operating income 107,190 108,437 117,467 128,305 135,119 Core operating profit 148,487 196,369

Financial income -2,198 -2,304 -1,605 -1,392 -919 Operating profit 136,890 183,193

Interest income 333 402 387 453 583 Finance income 3,106 5,206

Dividend income 1,136 1,335 1,602 1,840 2,112 Finance costs -4,066 -10,368

Interest expenses -3,668 -4,043 -3,595 -3,686 -3,615 Share of profit (loss) of entities accounted for

using equity method1,974 1,055

Equity in income of affi l iates 5,480 10,617 8,822 8,025 14,167 Profit before tax 150,068 196,984

Ordinary income 110,909 114,822 123,612 133,168 145,946 Profit 87,115 138,848

Profit attributable to owners of the parent 55,094 57,183 61,749 69,118 76,427 Profit attributable to owners of parent 89,221 141,003

EBITDA *1 166,833 170,982 183,696 192,308 197,994 EBITDA *1 205,803 285,394

Capital expenditures / Depreciation (Mill ions of Yen) Capital expenditures / Depreciation (Mill ions of Yen)

Capital expenditures 30,685 41,197 48,488 59,828 52,099 Capital expenditures 63,471 89,563

Depreciation 50,738 48,553 47,780 44,528 46,603 Depreciation 51,067 69,827

Consolidated Balance Sheets (Mill ions of Yen) Consolidated Statement of Financial Position (Mill ions of Yen)

Total assets 1,529,908 1,732,188 1,791,556 1,936,610 1,901,554 Total assets 2,094,332 3,346,822

Current assets 457,146 529,189 534,890 603,842 600,498 Current assets 635,026 812,426

Receivables 279,596 317,008 317,106 353,704 362,241 Trade and other receivables 397,340 433,436

Inventories - - - - - Inventories 136,460 155,938

Merchandise and finished goods, Raw

materials and supplies102,631 113,519 118,302 124,549 132,315 Non-current assets 1,459,305 2,534,396

Noncurrent assets 1,072,762 1,202,998 1,256,665 1,332,767 1,301,056 Goodwill and intangible assets 499,489 1,538,679

Tangible fixed assets 536,236 583,399 584,219 605,415 582,098 Current l iabilities 819,556 1,052,157

Current l iabilities 602,166 680,068 666,081 757,374 715,193 Bonds and borrowings 281,870 359,722

Noncurrent l iabilities 283,943 325,240 297,993 282,725 294,531 Non-current l iabilities 428,670 1,141,917

Financial obligation 390,092 456,234 403,723 434,726 414,930 Bonds and borrowings 288,490 902,203

Net assets 643,799 726,879 827,481 896,510 891,829 Total equity 846,105 1,152,748

Equity 641,733 723,819 819,295 881,091 877,672 Total equity attributalble to owners of parent 836,354 1,145,135

Consolidated Statements of Cash Flows (Mill ions of Yen) Consolidated Statement of Cash Flows (Mill ions of Yen)

Net cash provided by operating activities 108,513 109,292 157,252 146,783 112,765 Cash flows from (used in) operating activities 154,452 231,712

Net cash used in investing activities -171,235 -134,320 -65,705 -92,183 -75,583 Cash flows from (used in) investing activities -268,507 -885,823

Net cash provided by (used in) financing

activities67,090 43,002 -84,938 -35,842 -73,044 Cash flows from (used in) financing activities 119,554 661,882

Cash and cash equivalents 16,137 34,320 41,117 62,235 43,290 Cash and cash equivalents at the end of period 48,459 58,054

Free cash flow *2 81,919 68,952 108,292 82,747 61,257 Free cash flow *2 96,304 143,830

*1: EBITDA＝Operating income (before goodwill) + Depreciation and amortization *2: Free cash flow = Operating cash flows ± Acquisition of tangible and intangible fixed assets

Management Index Management Index

ROE 8.8% 8.4% 8.0% 8.1% 8.8% ROE 11.0% 13.7%

ROA 7.6% 7.0% 7.0% 7.1% 7.6% ROA 7.7% 7.2%

EPS (yen) 118.4 122.8 135.7 148.9 166.3 EPS (yen) 194.8 262.2

BPS (yen) 1,378.2 1,553.4 1,772.5 1,904.6 1,916.7 BPS (yen) 1,825.6 2,499.6

Investment Index Investment Index

Dividend payout ratio 21.1% 22.8% 31.7% 30.2% 30.1% Dividend payout ratio 27.7% 28.6%

Profitability Index Profitability Index

Gross profit margin 38.0% 38.3% 39.7% 39.9% 40.8% Gross profit margin 35.7% 37.9%

Operating margin 7.3% 6.9% 6.9% 7.2% 7.3% Coreoperating margin 8.7% 9.4%

(Operating margin excluding liquor tax) (10.2%) (9.4%) (9.1%) (9.4%) (9.4%) (Core operating margin excluding liquor tax) (11.6%) (12.4%)

Ordinary income margin 7.6% 7.3% 7.2% 7.5% 7.9% Operating margin 8.0% 8.8%

Profit attributable to owners of the parent margin 3.8% 3.6% 3.6% 3.9% 4.1% Profit attributable to owners of parent margin 5.2% 6.8%

EBITDA ratio 11.4% 10.8% 10.7% 10.8% 10.7% EBITDA ratio 12.1% 13.7%

Efficiency Index (Times) Efficiency Index (Times)

Total asset turnover 1.00 0.97 0.97 0.96 0.97 Total asset turnover 0.88 0.77

Equity turnover 2.3 2.3 2.2 2.1 2.1 Equity attributable to owners of parent turnover 2.1 2.1

Fixed assets turnonver 2.7 2.8 2.9 3.0 3.1 Fixed assets turnonver 3.1 3.2

Inventory turnover 14.8 14.6 14.8 14.7 14.5 Inventory turnover 12.8 14.3

Receivables turnover 5.3 5.3 5.4 5.3 5.2 Trade receivables turnover 4.5 5.0

Safety Index Safety Index

Shareholders' equity ratio 41.9% 41.8% 45.7% 45.5% 46.2% Equity ratio attributable to owners of parent 39.9% 34.2%

Debt ratio 138.1% 138.9% 117.7% 118.0% 115.0% Debt ratio 149.2% 191.6%

Liquidity ratio 75.9% 77.8% 80.3% 79.7% 84.0% Liquidity ratio 77.5% 77.2%

Fixed assets ratio 167.2% 166.2% 153.4% 151.3% 148.2% Non-current assets ratio 174.5% 221.3%

Fixed assets/Liability ratio 115.9% 114.7% 112.5% 114.5% 111.0% Non-current assets / l iability ratio 115.4% 110.8%

Interest coverage ratio 32.4 25.6 40.9 39.9 30.9 Interest coverage ratio 42.2 41.4

Debt-to-equity ratio 0.61 0.63 0.49 0.49 0.47 Net Debt-to-equity ratio 0.62 1.05


Results of Main Businesses

Asahi Group at a Glance

◆Revenue and Core Operating Profit by Business (Before IFRS adjustment) (Billions of yen)

2017 Results 2018 Targets (announced on Feb. 15)

Revenue Core OPAmortization of

intangible

assetsRevenue Core OP

Amortization of

intangible

assets

Alcohol Beverages Business

Asahi Breweries 967.2 119.6 -0.2 976.5 124.1 -0.2


Asahi Soft Drinks 486.2 37.0 -1.7 510.0 38.7 -1.6

LB 20.2 0.9 - - - -

Food Business

Asahi Group Foods 126.1 11.1 - 126.3 11.7 -

Overseas Business

Europe business 373.6 51.1 -14.0 438.9 73.2 -17.3

Oceania business 173.2 14.0 -2.4 183.6 15.7 -2.4

Southeast Asia business 55.4 0.8 -0.7 46.8 2.1 -

China business 17.3 0.9 - 6.9 0.2 -

◆Foreign Exchange Rate (yen) ◆CAPEX / Depreciation (2017) (Billions of yen)

108.8 112.2 109.0 Alocohol Beverages

(equity method affiliate) 111.8 - - Soft Drinks

Euro (Western Europe) 118.1 126.7 128.0 Food

Euro (Central & Eastern Europe) - 128.6 128.0 Overseas

Australian Dollar 80.8 86.0 86.0 Others

Malaysian Ringgit 26.3 26.1 26.0 Total

0.0082 0.0084 0.0084

Chinese Yuan 16.4 16.6 16.4

(equity method affiliate) 17.1 16.4 -

Indonesian Rupiah

89.6 69.8

4.7 3.4

35.8 27.5

0.5 0.4

23.0 10.9

US Dollar 23.4 23.8

Business CAPEX Depreciation(Average) (Average) (announced on Feb. 15)

2016 Results 2017 Results 2018 Targets

◆Goodwill etc. by Business (As of December 31, 2017) (Biilions of yen)

Amortization

termRemaining years

Unamortized

balance of goodwillRemarks


Asahi Soft Drinks 245.3 100.0% - Goodwill 25.9 - - 23.0 Calpis Acquisiton in Oct. 2012

Intangible assets 34.6 5-20 - 24.9

Food Business

Asahi Group Foods 76.0 100.0% - 23.6 - - 4.5 Wakodo Acquisition : 22.7 billion yen in Apr. 2006 and 0.9

billion yen in Mar. 2007

Overseas Business

Asahi Europe Ltd 420.5 100.0% Oct. 2016 Goodwill 123.0 - - 143.2

(Europe business) Intangible assets 150.9 21-40 - 170.5

Asahi Breweries Europe Ltd 1,272.4 Mar. 2017 Goodwill 428.0 479.9

(Europe business) Intangible assets 475.5 40 538.6

Asahi Holdings (Australia) 242.6 100.0% Apr. 2009 Goodwill 123.5 - - 73.0

（Oceania business） (*1) (*2) Intangible assets 25.2 10-20 - 17.2

Southeast Asia business 173.4 100.0% Nov. 2011 Goodwill 37.4 - - 1.2

(*3) Intangible assets 7.0 0.9 0.5 -

Overseas Business

（Equity Method Affiliates）

Tsingtao Brewery - 19.9% Oct. 2009 51.3 - - 38.7 -

(*1) Total assets of Asahi Holdings (Australia) Pty Ltd（Asahi Holdings Australia）

(*2) Date of consolidation of other companies: Asahi Beverages Australia (Sep. 2011), Charlie's Group (Sep. 2011), Independent Liquor Group (Sep. 2011), Mountain H2O (Jan. 2012)

(*3) Total assets of Southeast Asia business.

Amount at the time of acquisition

% of voting

rightsCapital

Date of

consolidation

Goodwill

Amount in local currencyNote: The price changes according to the exchange rate.


Alcohol Beverages Business (Asahi Breweries, Ltd.)

Asahi Breweries, Ltd.

Business field Manufacture and sales of beer and other alcohol beverages, and related operations

Established September 1949*

Issued capital ¥20.0 billion

Number of employees 5,897(consolidated)* With the establishment of a pure holding company in July 2011, Asahi Breweries was split off as a separate company.

Corporate Profile, based on 2017 results

Alcohol Beverages BusinessRevenue and Core OP Margin Trend

Sales Breakdown by Product Category (2017)

Note: Retail prices are discretionary.

Main Products

WineWhisky and spirits RTD Shochu

Other Alcohol Beverages

Asahi Dry ZeroThis non-alcohol beer-taste beverage has an enjoyably dry finish and creamy foam, aiming at real “beer taste”. It contains not only zero alcohol but also zero calories (according to nutrition labeling standards) or zero saccharides.

Non-alcohol beer-taste beverage

Clear AsahiClear taste and pure sharp finish with malt flavor. Appreciate the new genre beer suiting for meal.

Asahi Style FreeA happoshu retains the rich flavor of malt with the concept of a relaxing fragrance and fresh aftertaste. Zero carb and law calories. This is the pioneer of zero carb happoshu, for those who care carb and calories intake.

Beer-type

Asahi Super DryA dry beer with a refined, clear taste. The texture is light, but it has a distinct edge. The sharp finish is emphasized in this standard-setting dry beer.

Clear Asahi Zeitaku Zero

New Genre with zero carb retains rich flavor of malt, using domestic golden malt.

J GAAP IFRS

On a value basis


Alcohol Beverages Business (Beer-Type Beverages: Sales by Container Type and Market Channel)

Beer-Type Market Share in Japan based on Taxable Shipment Volume

Sales Composition by Container Type (Jan. – Dec. 2017)

Asahi Breweries

Industry Overall Sources: Brewers Association of Japan

Year-on-year Sales by Container Type(Jan. – Dec. 2017)

Sales Composition by Marketing Channel (Jan. – Dec. 2017, Source: Asahi Breweries, Ltd.)

Beer-type Total Beer Happoshu, New genre

2017

Beer-type Total

Beer

Bottle Can Keg Total

Total 94.8% 98.5% 98.0% 97.9%

Beer 94.8% 97.3% 97.8% 97.0%

Bottle Can Keg Total

Beer 93.5% 97.8% 97.8% 97.1%

Commercial-

useHome-use Total

Beer 97.3% 96.9% 97.1%


Asahi Breweries Beer-type Beverage Sales by Month (2016)

Sales Volume of Non-Alcohol Beer-taste Beverages by Top Four Companies (2016)

Alcohol Beverage Business (Sales Volume by Month in 2016)

Taxable Shipment Volume of Beer-type Beverages by Top Five Companies (2016)

Asahi Breweries Non-Alcohol Beer-taste Beverage Sales by Month (2016)

Source: Brewers Association of Japan, Society to Consider the Happoshu Tax System.

(Millions of cases)

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. 1H 2H Total

No. of cases 0.33 0.49 0.56 0.65 0.67 0.73 0.86 0.95 0.72 0.66 0.56 0.76 3.43 4.51 7.94

YoY +13.8% +11.4% +9.8% +10.2% +0.0% +2.8% +10.3% +13.1% +12.5% +4.8% +12.0% +2.7% +6.9% +9.2% +8.2%

(Miilions of cases)

Jan. - Mar. Apr. - June Jul. - Sep. Oct. - Dec.

YoY % of total YoY % of total YoY % of total YoY % of total

Beer 39.35 -1.1% 48.8% 56.23 +1.4% 50.2% 56.00 -4.6% 50.8% 59.12 -3.0% 52.9%

Happoshu 11.70 -11.1% 14.5% 15.31 -6.9% 13.7% 15.47 -1.7% 14.0% 14.83 -8.0% 13.3%

New Genre 29.64 -4.2% 36.7% 40.56 +1.4% 36.2% 38.68 -1.1% 35.1% 37.88 -1.6% 33.9%

80.68 -3.8% - 112.10 +0.2% - 110.15 -3.0% - 111.83 -3.3% -

1H 2H Total

YoY % of total YoY % of total YoY % of total

Beer 95.58 +0.4% 49.6% 115.12 -3.8% 51.9% 210.70 -2.0% 50.8%

Happoshu 27.00 -8.8% 14.0% 30.30 -4.9% 13.7% 57.30 -6.8% 13.8%

New Genre 70.20 -1.0% 36.4% 76.56 -1.4% 34.5% 146.76 -1.2% 35.4%

192.78 -1.5% - 221.98 -3.1% - 414.76 -2.4% -

Total

Total

(Millions of cases)


No. of cases 0.78 1.06 1.30 1.56 1.44 1.63 1.96 2.02 1.60 1.39 1.22 1.75 7.76 9.93 17.69

YoY +11.6% +8.8% +2.4% +22.0% -16.6% -10.0% +2.7% +5.8% +9.3% -4.3% +2.0% +2.6% +0.1% +3.2% +1.8%

Taxable shipment volume (Millions of cases)

1H 2H Total

YoY Market share YoY Market share YoY Market share

Beer 47.61 -0.8% 49.8% 55.60 -5.2% 48.3% 103.21 -3.2% 49.0%

Happoshu 7.32 -3.2% 27.1% 7.97 -4.9% 26.3% 15.29 -4.1% 26.7%

New Genre 20.58 +8.2% 29.3% 22.53 +9.5% 29.4% 43.11 +8.9% 29.4%

75.50 +1.2% 39.2% 86.10 -1.7% 38.8% 161.61 -0.4% 39.0%

Sales

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

Beer -2.0% -10.0% +6.0% +0.0% -6.0% +1.0% -7.0% -1.0% -2.0% -9.0% +2.0% -3.0%

Happoshu -3.0% +4.0% +8.0% -18.0% -2.0% -4.0% -7.0% -3.0% -1.0% -8.0% +3.0% +0.0%

New Genre +14.0% +19.0% +11.0% +16.0% +7.0% +0.0% +3.0% +12.0% +8.0% +11.0% +17.0% +11.0%

+2.0% -2.0% +7.0% +2.0% -3.0% +0.0% -5.0% +2.0% +1.0% -4.0% +6.0% +0.0%

(Millions of cases)

No. of cases YoY No. of cases YoY No. of cases YoY

Beer 45.62 -1.7% 57.47 -3.7% 103.09 -2.8%

Happoshu 7.15 -3.7% 8.12 -3.0% 15.27 -3.3%

New Genre 20.18 +10.2% 22.74 +10.0% 42.92 +10.1%

72.96 +1.1% 88.33 -0.4% 161.29 +0.3%

Sales volume by brand (Millions of cases)

No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY

Super Dry total 4.52 -2.2% 5.84 -9.5% 7.50 -3.4% 8.35 -0.9% 7.94 -6.9% 9.61 +0.3%

Style Free total 0.70 +11.1% 0.97 +22.8% 1.05 +20.7% 1.12 -17.6% 1.16 -0.9% 1.20 -3.2%

Clear Asahi total 1.58 +21.5% 2.55 +28.1% 2.98 +12.5% 3.19 +16.4% 3.07 +6.6% 3.31 -3.5%


Super Dry total 10.25 -7.6% 10.21 -1.5% 7.48 -2.6% 7.30 -9.9% 7.87 +2.7% 13.13 -2.8%

Style Free total 1.21 -6.2% 1.21 +0.8% 1.18 +0.0% 1.10 -6.0% 1.06 +2.9% 1.40 +2.2%

Clear Asahi total 2.95 +2.1% 3.29 +11.5% 2.92 +14.5% 3.08 +15.8% 3.01 +19.0% 3.55 +11.6%

No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY

Super Dry total 17.86 -5.2% 25.90 -2.6% 27.94 -4.1% 28.30 -3.3% 43.76 -3.7% 56.24 -3.7% 100.00 -3.7%

Style Free total 2.72 +18.8% 3.48 -7.7% 3.60 -1.9% 3.56 -0.3% 6.20 +2.3% 7.16 -1.1% 13.36 +0.5%

Clear Asahi total 7.11 +19.7% 9.57 +5.7% 9.16 +9.2% 9.64 +15.2% 16.68 +11.3% 18.80 +12.2% 35.48 +11.7%

Total

Sep. Oct. Nov. Dec.

Jan. - Mar. Apr. - June July - Sep. Oct. - Dec. 1H 2H

July Aug.

Total

Jan. Feb. Mar. Apr. May June

Total

Total

1H 2H Total


Alcohol Beverage Business (Sales Volume by Month in 2017)

Asahi Breweries Beer-type Beverage sales by Month (2017)

Sales Volume of Non-Alcohol Beer-Taste Beverages by Top Four Companies (2017)

Taxable Shipment Volume of Beer-type Beverages by Top Five Companies (2017)

Asahi Breweries Non-Alcohol Beer-taste Beverage Sales by Month (2017)

Source: Brewers Association of Japan, Society to Consider the Happoshu Tax System.

(Millions of cases)


No. of cases 0.78 1.01 1.27 1.68 1.70 1.71 2.19 2.03 1.67 1.42 1.31 1.85 8.15 10.47 18.63

YoY +0.0% -5.0% -2.3% +7.6% +18.3% +4.7% +11.6% +0.6% +4.5% +2.3% +7.7% +6.1% +5.0% +5.4% +5.3%

Taxable shipment volume (Millions of cases)

1H 2H Total

YoY Market share YoY Market share YoY Market share

Beer 46.36 -2.6% 49.2% 53.40 -4.0% 48.4% 99.76 -3.3% 48.8%

Happoshu 7.25 -0.9% 27.5% 7.86 -1.4% 27.5% 15.11 -1.2% 27.5%

New Genre 21.55 +4.7% 30.9% 21.74 -3.5% 29.1% 43.29 +0.4% 30.0%

75.17 -0.4% 39.5% 83.00 -3.6% 38.8% 158.17 -2.1% 39.1%

Sales

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

Beer -3.0% +1.0% -5.0% -7.0% +14.0% -10.0% -1.0% -9.0% -6.0% -6.0% -2.0% -1.0%

Happoshu -1.0% -2.0% +2.0% -2.0% +9.0% -7.0% -1.0% -2.0% -5.0% -2.0% -4.0% -5.0%

New Genre +11.0% +9.0% +1.0% +0.0% +22.0% -13.0% +1.0% -6.0% +4.0% -11.0% -6.0% -1.0%

+1.0% +3.0% -2.0% -4.0% +16.0% -11.0% +0.0% -7.0% -3.0% -7.0% -3.0% -2.0%

(Millions of cases)

No. of cases YoY No. of cases YoY No. of cases YoY

Beer 44.71 -2.0% 55.28 -3.8% 99.98 -3.0%

Happoshu 7.14 -0.2% 7.87 -3.1% 15.01 -1.7%

New Genre 20.98 +3.9% 22.00 -3.2% 42.98 +0.1%

72.82 -0.2% 85.15 -3.6% 157.97 -2.1%

Sales volume by brand (Millions of cases)


Super Dry total 4.41 -2.4% 5.75 -1.5% 7.96 +6.1% 7.84 -6.1% 9.06 +14.1% 8.63 -10.2%

Style Free total 0.72 +2.9% 0.96 -1.0% 1.08 +2.9% 1.12 +0.0% 1.28 +10.3% 1.14 -5.0%

Clear Asahi total 1.85 +17.1% 2.77 +8.6% 3.01 +1.0% 3.23 +1.3% 3.73 +21.5% 2.93 -11.5%


Super Dry total 10.26 +0.1% 9.39 -8.0% 7.06 -5.6% 6.89 -5.6% 7.70 -2.2% 13.02 -0.8%

Style Free total 1.23 +1.7% 1.17 -3.3% 1.14 -3.4% 1.10 +0.0% 1.06 +0.0% 1.35 -3.6%

Clear Asahi total 2.99 +1.4% 3.10 -5.8% 3.09 +5.8% 2.71 -12.0% 2.88 -4.3% 3.56 +0.3%

No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY No. of cases YoY

Super Dry total 18.12 +1.5% 25.53 -1.4% 26.71 -4.4% 27.61 -2.4% 43.65 -0.3% 54.32 -3.4% 97.98 -2.0%

Style Free total 2.76 +1.5% 3.54 +1.7% 3.54 -1.7% 3.51 -1.4% 6.30 +1.6% 7.05 -1.5% 13.35 -0.1%

Clear Asahi total 7.63 +7.3% 9.89 +3.3% 9.18 +0.2% 9.15 -5.1% 17.52 +5.0% 18.33 -2.5% 35.85 +1.0%

Total

Total

1H 2H Total

Total

Jan. Feb. Mar. Apr. May June

Total

July Aug. Sep. Oct. Nov. Dec.

Jan. - Mar. Apr. - June July - Sep. Oct. - Dec. 1H 2H

(Millions of cases)


No. of cases 0.37 0.46 0.57 0.64 0.72 0.73 0.90 0.89 0.72 0.62 0.58 0.80 3.49 4.51 8.00

YoY +12.1% -6.1% +1.8% -1.5% +7.5% +0.0% +4.7% -6.3% +0.0% -6.1% +3.6% +5.3% +1.7% +0.0% +0.8%

(Miilions of cases)

Jan. - Mar. Apr. - June Jul. - Sep. Oct. - Dec.

YoY % of total YoY % of total YoY % of total YoY % of total

Beer 38.84 -1.3% 48.5% 55.37 -1.5% 50.3% 53.59 -4.3% 50.8% 56.79 -3.9% 52.4%

Happoshu 11.60 -0.8% 14.5% 14.76 -3.5% 13.4% 14.33 -7.4% 13.6% 14.30 -3.6% 13.2%

New Genre 29.71 +0.2% 37.1% 39.97 -1.5% 36.3% 37.59 -2.8% 35.6% 37.22 -1.7% 34.4%

80.15 -0.7% - 110.11 -1.8% - 105.51 -4.2% - 108.31 -3.1% -

1H 2H Total

YoY % of total YoY % of total YoY % of total

Beer 94.21 -1.4% 49.5% 110.38 -4.1% 51.6% 204.59 -2.9% 50.6%

Happoshu 26.36 -2.4% 13.9% 28.63 -5.5% 13.4% 54.99 -4.0% 13.6%

New Genre 69.68 -0.7% 36.6% 74.82 -2.3% 35.0% 144.50 -1.5% 35.8%

190.25 -1.3% - 213.82 -3.7% - 404.08 -2.6% -

Total

Total


Wine

Whisky andSprits

Sake

Composition by category

98%

110%

101%

101%

91%

101%

97.1%

96.0%

98.5%

97.4%

RTD

Shochu

2017

Whisky and Spirits 34%

Wine 7%

RTD 14%

Shochu 6%

Total

Alcohol Beverage Business (Domestic Alcohol Beverages Market Data)

Size of Domestic Beer Market (taxable shipment volume; Millions of cases)

Beer

Happoshu

New Genre

Size of Domestic Market for Other Drinks (taxable shipment volume; 1,000 KL, estimates)

YoY(2017/2016)

Share of sales by product in 2017 (Source: Asahi Breweries, Ltd.)

YoY(2015/2014)

Taxable Shipment Volume in 2015 (Compiled from National Tax Agency reference materials)

Per capita beer consumption (liters/year)

Total

YoY(2017/2016)

(+0.7)

(±0)

(-0.4)

(±0)

(+0.2)

(+0.2)

(+0.5)

(-0.1)


Note: The upper figures are store prices at a major convenience store chain.(Includes consumption tax, at the end of 2016.)

Liquor Tax

Domestic: Comparison of the Liquor Tax on a 350 ml Serving (yen)

Source: Brewers Association of Japan (January 2016).Notes: 1. The monetary amounts (liquor tax, consumption tax, and

retail price) are for a 350 ml serving, in yen.2. Amounts are converted into yen at ¥125.15/euro, ¥111.94/US$, and ¥166.70/pound, the rates effective at the end of May 2016.3. The U.S. survey was conducted in New York.

Other Major Countries: Comparison of the Liquor Tax on Beer (yen)

Source: National Tax Agency, “Sake no Shiori (Statistics on Alcoholic Beverages)” (2017).

Domestic: Liquor Tax Comparison per Percentage of Alcohol per Liter (yen)

Source: Brewers Association of Japan (January 2016).Note: The U.S. survey was conducted in New York.

Other Major Countries: Liquor Tax Index per Percentage of Alcohol (distilled spirits = 100)

Revision of Liquor Tax (liquor tax on a 350 ml serving (yen))

Liquor tax

164143

221

<Beer-type> <Sake / Wine / RTD>


Soft Drinks Business (Asahi Soft Drinks Co., Ltd.)

Business Field Manufacture and sales of a range of soft drinks, operation of vending machines, and related operations.Focusing on core brands (Mitsuya,Wilkinson, WONDA, Jurokucha, Oishii Mizu, Calpis) and facilitating health field

Established March 1972

Issued Capital ¥11.1 billion

Number of employees 3,381 (consolidated)

Asahi Soft Drinks Co., Ltd.

FOSHUFoods with

Function ClaimsLactic Acid

Mitsuya Cider (500 ml PET bottle)The well-known fresh taste of this drink starts with water “polished” through repeated filtration, to which we add fragrances gathered from fruit and other sources. No heat is applied in the production process, and no preservatives are added. Ever since its debut in 1884, Mitsuya Cider has been a nationally famous carbonated beverage.Suggested retail price (tax not included): 500 ml ¥140

Asahi Jurokucha (600 ml PET bottle) Made from 16 carefully selected ingredients. With no caffeine and an aromatic, clean taste, this tea can be gulped down easily. The blend is perfect for healthy hydration.Suggested retail price (tax not included): 600 ml ¥140

Asahi Oishii Mizu Fujisan (600 ml PET

bottle)Note: In western Japan, Fujisan is replaced by Rokko. The delicious taste of nature, just as it was meant to be. This natural water from abundant nature is collected from deep underground. We use a sterile packaging method to safely bring you the taste of natural mineral water.Suggested retail price (tax not included): 600 ml ¥115

WONDA Morning Shot (185 mg can)Made especially for morning consumption, this canned coffee goes down easily but has a bracing bitterness. It features a just-roasted, just-ground, just-poured taste suitable for starting your day. Suggested retail price (tax not included): 185 mg ¥115

Wilkinson Tansan (500 ml PET bottle)The No. 1 sparkling water brand*. Consisting only of “polished” water that has been carbonated, it packs a refreshing punch. This genuine sparkling water has the kind of clear, clean taste preferred by adults.Enjoy it as either a mixer or straight.Suggested retail price (tax not included): 500 ml ¥95

Calpis (470 ml “peace bottle”) This fermented lactic beverage, made from lactic acid bacteria and raw milk, has 95 years of history.We remove the butterfat from fresh, domestically produced milk, then slowly ferment the milk with our unique lactic acid bacteria.The invigorating taste of nature’s goodness can be enjoyed by everyone from children to the elderly.Suggested retail price (tax not included): 470 ml ¥460

Note: Prices are current as of December 2017.

Facilitation of Health Field

Corporate Profile, based on 2017 results Main Products

Soft Drinks BusinessRevenue and Core OP Margin Trend

J GAAP IFRS


Soft Drinks Business (Sales by Asahi Soft Drinks)

Sales Volume and Market Share Trend

Asahi Soft Drinks Monthly Sales Volume YoY Performance by Category and 6 Core Brands (2017)

(Millions of cases)

Sales Volume and Composition Trend of6 Core Brands

(Millions of cases)

Category / Brand January February March April May June July August September October November December Total

Carbonates 30% 13% -2% -1% 8% 5% 13% 2% 8% 1% 9% 8% 7%

Mitsuya 24% 6% -14% -17% -5% -9% 6% -3% -2% -10% -3% -1% -4%

Wilkinson 44% 28% 33% 29% 38% 25% 12% 9% 17% 14% 24% 19% 22%

Lactic Acid Drink 32% 1% 1% 12% 11% 7% 23% -5% 5% -3% 17% 2% 8%

Calpis 39% 13% 7% 20% 13% 10% 27% -5% 3% -3% 16% 0% 10%

Calpis concentrated 24% 9% 15% -1% 2% -10% 10% -8% 5% -5% 20% -1% 2%

Coffee 10% -6% 16% 7% -8% 2% 2% -5% 4% 1% -7% -7% 0%

WONDA 8% -9% 14% 5% -9% 1% 0% -6% 5% 2% -6% -7% -1%

Tea -4% 3% -3% 0% 3% -11% 4% -12% -11% -11% 1% -9% -5%

Jurokucha -16% 6% -9% 0% 3% -9% 6% -15% -10% -10% 10% -11% -5%

Mineral Water -1% -14% -5% -23% -9% -15% -6% -8% -6% -13% -8% 0% -10%

Oishii Mizu -1% -14% -5% -23% -9% -15% -6% -8% -6% -13% -8% 0% -10%

Fruit Juice -2% 8% 1% -12% -6% -11% 6% -11% -12% -13% -4% 0% -5%

Bireley's -6% -2% -4% -7% -5% -12% 5% -13% -11% -15% -9% -2% -7%

Welch's -33% 29% 2% -29% -11% -11% 12% -6% -27% -22% -8% -7% -11%

Total 13% 2% 2% -1% 2% -1% 9% -5% 0% -4% 2% -1% 1%

Health Functional Category 17% -3% 67% 76% 30% 44% 39% 31% 24% -14% 22% 25% 29%


Sales by Brand and Category (2017, Millions of cases)

Sales by Marketing Channel (2017, Millions of cases)

Sales by Container Type (2017, Millions of cases)

Soft Drinks Business (Sales by Asahi Soft Drinks)

Composition

Composition

Composition2017 2016 YoY

Can 74.00 77.93 95.0%

PET bottle total 167.21 161.16 103.8%

Large size (up to 2L) 67.54 72.41 93.3%

Small size (up to 660ml) 99.67 88.75 112.3%

Glass bottle 6.39 6.17 103.6%

Paper container and others 8.37 8.61 97.3%

Total 255.98 253.86 100.8%

2017 2016 YoY

Vending machines 54.82 54.26 101.0%

Over-the-counter total 201.16 199.60 100.8%

Convenience stores 49.03 44.05 111.3%

Supermarkets 106.65 109.04 97.8%

Others 45.47 46.52 97.8%

Total 255.98 253.86 100.8%

2017 2016 YoY

Carbonated drinks total 62.06 58.19 106.7%

Mitsuya 37.52 39.03 96.1%

Wilkinson 19.90 16.30 122.1%

Fruit juice total 22.42 23.60 95.0%

Coffee total 44.17 44.00 100.4%

WONDA 41.65 41.91 99.4%

RTD Tea total 40.20 42.10 95.5%

Jurokucha 22.93 24.05 95.3%

Mineral water total 23.46 25.94 90.4%

Lactic acid total 44.37 41.27 107.5%

Calpis 38.34 35.15 109.1%

Other drink total 19.29 18.75 102.9%

Total 255.98 253.86 100.8%


Composition

Sales by Category (2017, Millions of cases)

Composition

Sales by Marketing Channel (2017, Millions of cases)

Composition

Sales by Container Type (2017, Millions of cases)

102%

95%

100%104%100%

102%

101%

98%

105%

100%

99%

101%

101%

98%

102%

102%

100%

Source : Inryosoken

Soft Drinks Business (Domestic Soft Drinks Market Data)

YoY(2017/2016)

97%

YoY(2017/2016)

YoY(2017/2016)

1,899.01,858.0 1,830.0 1,849.0

1,896.0

1,899.01,858.0 1,830.0 1,849.0 1,896.0

1,899.01,858.0 1,830.0 1,849.0 1,896.0


アサヒフードアンドヘルスケア株式会社アサヒフードアンドヘルスケア株式会社Asahi Group Foods, Ltd.

Food Business (Asahi Group Foods, Ltd.)

Business Field Asahi Group Foods, Ltd. offers lineup of highly original products produced by 3 major subsidiaries. Confectioneries, Supplements, Baby Products, Freeze-Dried Foods and others.

Established July 2015

Issued capital ¥5.0 billion

Number of employees1,294(consolidated)

Note: Business results are calculated based on the structure of Asahi Group Foods, Ltd., which has started the business on 1 January 2016.

Sales Breakdown by Product Category (2017)

MINTIA Wild & CoolBrisk and refreshing! This standard mint tablet has a unique, exhilarating flavor and create an invigorating cooling sensation in the mouth.Suggested retail price (tax not included):50 tablets (7g) ¥100

Dear Natura EPA & DHAThis product contains eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). EPA and DHA have effect to reduce triglycerides. They are reported to be helpful for the health of those who have relatively high triglycerides.Suggested retail price (tax not included):180 tablets (for 30 days) ¥2,200

Lebense Milk HiHiThis infant formula was developed based on many years of research into mother's milk and state-of-the-art knowledge of infant nutrition. Since the ingredients and their balance closely approximate breast milk, it can be used with confidence and peace of mind when milk production is insufficient or breastfeeding isn't possible for some other reason.Suggested retail price (tax not included):850g price is discretionary

Goo Goo KitchenThis line of baby food was developed to relieve concerns about refusal to eat or swallowing without chewing, with careful attention paid to the size and firmness of ingredients and easy-to-eat texture depending on the age of months.Suggested retail price (tax not included):80g price is discretionary

Itsumono Miso soup EggplantThis freeze dried miso soup is made from mellow blended miso and bonito flake stock. It has a classic flavor and goes down smoothly, providing full enjoyment of the silky smooth texture of eggplant.Suggested retail price (tax not included):1 pack ¥100

The UmaniFocused on umami the ingredients originally have, this soup is made by freeze-dried method avoiding the loss of color, flavor and texture of ingredients.Suggested retail price (tax not included):1 pack ¥100

Note: Prices are current as of August 2017.

Corporate Profile, based on 2017 results Main Products

Food BusinessRevenue and Core OP Margin Trend

J GAAP IFRS

On a value basis


Baby Food Market Trend Baby Food Market Share (2017)

Food Business (Domestic Food Business Market Data)

Instant Miso Soup Market Trend Market Share for Instant Miso Soup (2016)(Billions of yen)

Source: INTAGE Food SRI / candy (candy tablet market) / nationwide (excluding Okinawa) / all-industry, January 2013 to December 2017.

Candy Tablet Market Trend Candy Tablet Market Share (2017)(Billions of yen)

Source: INTAGE Food SRI / candy (candy tablet market) / nationwide (excluding Okinawa) / all-industry, January 2016 to December 2016.

On a value basis

Source: SDI data, all-industryOn a value basis

Source: SDI data, all-industry

Source: Fuji KeizaiOn a value basis

Source: Fuji Keizai

(Billions of yen)


(As of December 31, 2017)Overseas Business and Capital Alliances

Overseas Sales of Super Dry

Overseas Business (Overview of Overseas Business)

Sales Volume Trend Sales Composition by Area (2017)

Millions of cases (equivalent to 20×633ml bottles)

CAGR(2014-2018)

-3%

+15%

+18%

+19%

+6%

+10%

+13%


Overseas Business (Global Beer Market)

26

Beer Market Trend by Price Category

15%

62%

15%

9%

53%

21%

17%

Source: Canadean

(000 KL) (Million US$)Composition Composition

8%

Source：Barth Report (Barth Haas Group)Top 15 Beer Producing Countries

Top 15 Breweries Source：Barth Report (Barth Haas Group)

2007 - 2017CAGR

Total

+0.5% +0.3% +1.4% +5.0% +1.2%2007 - 2017CAGR

Total

+0.0% +0.1% +2.5% +5.0% +0.8%

Ranking Company CountryOutput 2016

(million KL)

World Share

(%)Output YoY

Output 2015

(million KL)

World Share

(%)

1 Anheuser-Busch InBev Belgium 43.39 22.2 5.9% 40.99 21.2

2 Heineken Netherlands 20.01 10.2 6.3% 18.83 9.7

3 China Resources Breweries China 11.88 6.1 1.2% 11.74 6.1

4 Carlsberg Denmark 11.69 6.0 -2.8% 12.03 6.2

5 Molson Coors USA / Canada 9.52 4.9 63.9% 5.81 3.0

6 Tsingtao Brewery Group China 7.92 4.0 12.3% 7.05 3.6

7 Asahi Japan 5.90 3.0 187.8% 2.05 1.1

8 Yanjing China 4.50 2.3 -6.8% 4.83 2.5

9 Kirin Japan 4.25 2.2 -1.4% 4.31 2.2

10 BGI / Groupe Castel France 3.29 1.7 10.4% 2.98 1.5

11 Petropolis Brazil 2.14 1.1 -7.0% 2.30 1.2

12 Constellation Brands USA 2.10 1.1 27.3% 1.65 0.9

13 Efes Group Turkey 1.95 1.0 -5.8% 2.07 1.1

14 Gold Star China 1.80 0.9 0.0% 1.80 0.9

15 San Miguel Corporation Philippines 1.63 0.8 -2.4% 1.67 0.9

15 comapanies total 131.97 67.4 9.9% 120.11 61.2

World Beer Production 195.75 -0.2% 196.10

million KL

Production CAGR

Ranking Country 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007-2016

1 China 39.31 41.03 42.36 44.83 48.99 49.02 50.65 49.67 47.16 46.00 1.8%

2 USA 23.28 23.06 23.10 22.90 22.65 23.01 22.53 22.61 22.41 22.14 -0.6%

3 Brazil 9.60 10.63 10.70 12.87 13.30 13.28 13.47 14.14 13.86 13.33 3.7%

4 Mexico 8.10 8.23 8.23 7.99 8.15 8.25 8.20 7.80 9.71 10.50 2.9%

5 Germany 10.40 10.29 9.81 9.57 9.55 9.46 9.44 9.53 9.56 9.50 -1.0%

6 Russia 11.50 11.40 10.85 10.29 9.81 9.76 8.93 8.22 7.82 7.82 -4.2%

7 Japan 6.28 6.11 5.98 5.81 5.60 5.77 5.72 5.65 5.38 5.52 -1.4%

8 United Kingdom 5.13 4.96 4.51 4.50 4.57 4.30 4.20 4.43 4.41 4.40 -1.7%

8 Vietnam 1.80 1.85 2.30 2.65 2.78 2.98 3.57 3.89 3.67 4.08 9.5%

9 Poland 3.55 3.56 3.22 3.60 3.60 3.93 3.96 3.95 4.09 4.07 1.5%

11 Spain 3.44 3.34 3.38 3.34 3.36 3.30 3.27 3.35 3.48 3.62 0.6%

12 South Africa 2.65 2.59 2.88 2.96 3.09 3.15 3.15 3.15 3.21 3.20 2.1%

13 Nigeria 1.35 1.54 1.60 1.76 1.96 2.40 2.65 2.70 2.70 2.60 7.6%

14 France 1.51 1.44 1.43 1.56 1.91 1.97 1.85 2.05 2.40 2.47 5.6%

15 Netherlands 2.73 2.72 2.54 2.39 2.36 2.43 2.36 2.37 2.40 2.46 -1.2%

15 countries total 130.63 132.76 132.90 137.02 141.68 143.00 143.94 143.51 142.26 141.70 0.9%

World Beer Production 178.71 181.92 181.76 186.35 192.89 196.20 197.21 196.31 196.10 195.75 1.0%

<Volume> <Value>


We acquired the Peroni, Grolsch, Meantime and related businesses of SAB Miller plc in October 2016.Grolsch and Peroni are two of the best-known premium

beer brands in the world with over 400 years and 150 years of history, respectively, and both are well recognized inter alia in Europe. Meantime is a pioneer brand in craft beer category in UK and is rapidly growing its popularity amongst the younger generation in urban areas such as London.Through this acquisition, we aim to expand its growth

platform in Europe and become a global player with a distinct position. We leverage the distribution network of these business to maximize synergies through increasing the presence of its flagship Asahi Super Dry brand.

Overseas Business (Europe business / Italy, Netherlands and UK)

Europe Business

(Million Euro)

Main Brands

Excluding intercompany / elimination

Italy

Netherlands

UK

Revenue and Core OP Margin Trend

Before acquisition Asahi

Sales Volume Breakdown by Country (2017) Revenue Breakdown by Country (2017)

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjL8YSq-NnQAhUDKZQKHXPUAuwQjRwIBw&url=http://www.henksmit.nl/merk/grolsch&bvm=bv.140496471,d.dGo&psig=AFQjCNG-h8tqDTMkqhhCho905AaIm0BeDg&ust=1480920338264260

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjL8YSq-NnQAhUDKZQKHXPUAuwQjRwIBw&url=http://www.henksmit.nl/merk/grolsch&bvm=bv.140496471,d.dGo&psig=AFQjCNG-h8tqDTMkqhhCho905AaIm0BeDg&ust=1480920338264260

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjVsb3V-NnQAhVFnJQKHfkxBPMQjRwIBw&url=http://www.suggest-keywords.com/Z3JvbHNjaCByYWRsZXI/&psig=AFQjCNHiU2RpiC3N3RTNBx_DXL01XHhwmw&ust=1480920422324193

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjVsb3V-NnQAhVFnJQKHfkxBPMQjRwIBw&url=http://www.suggest-keywords.com/Z3JvbHNjaCByYWRsZXI/&psig=AFQjCNHiU2RpiC3N3RTNBx_DXL01XHhwmw&ust=1480920422324193

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwitp9n9-NnQAhWHpJQKHVzrCugQjRwIBw&url=http://nwdreno.com/portfolio/grolsh/&bvm=bv.140496471,d.dGo&psig=AFQjCNGi6JmvUHePmis3pSPK0Kjs8ZcewA&ust=1480920452303649

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwitp9n9-NnQAhWHpJQKHVzrCugQjRwIBw&url=http://nwdreno.com/portfolio/grolsh/&bvm=bv.140496471,d.dGo&psig=AFQjCNGi6JmvUHePmis3pSPK0Kjs8ZcewA&ust=1480920452303649

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwinws2t-dnQAhVCkJQKHWhoB1oQjRwIBw&url=http://www.keywordsking.com/Ymxpaw/&bvm=bv.140496471,d.dGo&psig=AFQjCNGk5c8SGXWpPz4c4vdWOc8Fvl1poQ&ust=1480920613794165

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwinws2t-dnQAhVCkJQKHWhoB1oQjRwIBw&url=http://www.keywordsking.com/Ymxpaw/&bvm=bv.140496471,d.dGo&psig=AFQjCNGk5c8SGXWpPz4c4vdWOc8Fvl1poQ&ust=1480920613794165

http://uk.asahibeer.co.uk/pilsner-urquell

http://uk.asahibeer.co.uk/pilsner-urquell


Overseas Business (Europe Beer Market / Italy, Netherlands and UK)

Market Share by Price Segment and Composition by Channel (2017)

Source : CanadeanOn a volume basis

the price of the leading brand in the most popular pack type = 100Super Premium > 151150 > Premium > 115114 > Mainstream > 9190 > Discount

<Italy>

<Netherlands>

<UK>

CAGR(2012-2017)

Total 17.80 million hL

-1.6%

Super Premium26%

Premium24%

Mainstream37%

Discount13%

+2.8%

-2.1%

+3.8%

+1.1%

Total 44.58 million hL

CAGR(2012-2017)

-7.7%

-2.6%

+0.8%

+8.6%

-0.2%

Super Premium19%

Premium26%

Mainstream53%

Discount2%

CAGR(2012-2017)

Total 12.22 million hLSuper Premium

6%Premium

19%

Mainstream54%

Discount21% -2.6%

-0.2%

+2.9%

+4.7%

+0.1%


We acquired the Czech, Slovakia, Poland, Romania, Hungary businesses as well as intellectual property rights relating to the brands, including Pilsner Urquell of SAB Miller plc in March 2017. (excl. USA and Puerto Rico)The businesses include global brands such as Pilsner

Urquell, the original Pilsner beer, and Kozel. It has the top market shares in Czech (the world’s highest per capita beer drinking country), Slovakia, Poland, Romania and Hungary, resulting in significant profitability on the background of the strong business platform.Through the acquisition of the businesses, together with

Super Dry, Peroni and Grolsch, we aim to establish a unique position as a global player, mainly focusing on a leading premium brand portfolio to achieve sustainable growth.

Central & Eastern Europe Business Main Brands

Poland

Czech

Slovakia

Hungary

Romania

Overseas Business (Europe business / Poland, Czech, Slovakia, Romania, Hungary)

Sales Volume Composition by Country(April – December, 2017)

Revenue Composition by Country(April – December, 2017)

Lech

Tyskie

Pilsner Urquell

Kozel

Pilsner Urquell

Kozel

Ursus

Timisoreana

Dreher

Arany Aszok

(Million Euro)Revenue and Core OP Margin Trend

Excluding intercompany / elimination

Before acquisition Asahi


<Poland>

<Czech>

<Slovakia>

<Romania>

<Hungary>

<Composition by Channel>

Offpremise

Onpremise

Overseas Business (Europe Beer Market / Poland, Czech, Slovakia, Romania, Hungary)

Market Share by Price Segment and Composition by Channel (2017)

CAGR(2012-2017)

Total 39.12 Million hL

-2.9%

CAGR(2012-2017)



CAGR(2012-2017)

CAGR(2012-2017)


CAGR(2012-2017)


Super Premium6%

Premium24%

Mainstream46%

Discount24%

-2.0%

+7.3%

+26.0%

+0.5%

Super Premium34%

Premium15%

Mainstream38%

Discount14%

-1.0%

-4.2%

+3.1%

+3.8%

-0.4%

-10.7%

-1.6%

+5.1%

+10.9%

+1.4%

-3.8%

+1.2%

+11.2%

-9.7%

+0.7%

+7.2%

-4.8%

-2.1%

+0.1%

+0.5%

Super Premium17%

Premium29%

Mainstream51%

Discount3%

Super Premium4%

Premium21%

Mainstream50%

Discount26%

Super Premium3%

Premium11%

Mainstream38%

Discount48%

Source : CanadeanOn a volume basis


On a value basis On a value basis

Overseas Business (Oceania Non-Alcohol Beverages Business)

Asahi Beverages Sales Breakdown by Channel (2017)

Oceania Non-Alcohol Beverages Business Product Lineup

Oceania Business Revenue Trend (Million AUD)

Asahi Beverages Sales Breakdown by Category (2017)

Oceania Beverages Business

In April 2009, Asahi purchased Schweppes Australia Pty Ltd, the second-largest beverage company in the stably growing Australian soft drink market, from the Cadbury Group.Schweppes Australia manufactures and markets own-

brand and licensed products in its mainstay category of carbonated beverages, as well as sports drinks and fruit juice.In 2011, Asahi purchased the juice and water businesses of

P&N Beverages Pty Ltd, Australia’s third-largest beverage company, and Charlie’s Group Limited (now The Better Drinks), a New Zealand-based company specializing in premium beverages. In 2012, it continued to strengthen and expand its business base in Oceania by purchasing bottled water specialist Mountain H2O.

Pepsi

Carbonated

Sports DrinksJuice

Water

Tea

Real Iced Tea Co.

FrantelleCool Ridge

Spring ValleyCharlie’sQuencher

Cool RidgeLightly Sparkling

SoloSchweppes

Gatorade


+7%

-1%

-2%

+5%

CAGR(2013-2017)

+6%

-5%

Overseas Business (Oceania Non-Alcohol Beverages Market)

Beverage Market Trend Sales Trend of Private Label

Market Share by Company (2017)Market Breakdown by Category (2017)

Market Trend by Category

Australian Beverages Market Data

(‘000KL)

(‘000KL)

+6%

Source : EuromonitorYoY Source : EuromonitorOn a volume basis

Source : AZTECOn a volume basis

Source : AZTECOn a volume basis

Source : Euromonitor

+1%Total


Overseas Business (Oceania Alcohol Beverages Business)

Oceania Alcohol Beverage Business

Asahi Premium Beverages (Australia)Breakdown by Category (2017)

Independent Liquor (New Zealand)Breakdown by Category (2017)

Asahi Brands Sales Volume Trend

Oceania Alcohol Beverage Business Product Lineup

In September 2011, Asahi’s purchase of the Independent Liquor Group (henceforth, the IL Group) marked its full-fledged entry into the Oceania alcohol beverage market.Currently, a corporate group centered on Independent Liquor (NZ) Ltd. and Asahi Premium Beverages Pty Ltd manufactures and markets a multi-category lineup of alcohol drinks consisting mainly of RTD (low-alcohol) beverages, as well as spirits, wine, and beer, in New Zealand and Australia. As a beverage maker, Independent Liquor has built up a solid brand over the years.In April 2012, marketing responsibility for Asahi Super Dry

was transferred to Independent Distillers (NZ) Ltd., and in October of that year to Asahi Premium Beverages. In this way, we have strengthened and expanded our alcoholic beverage business in Oceania.

On a value basisOn a value basis

(Millions of cases)

YoY

Wild Side

Boundry Road

RTD Beer

Cider

Woodstock Vodka Cruiser Super Dry Soukai

Somersby Mountain Goat Cricketers Arms


Overseas Business (Oceania Alcohol Beverages Market)

Beer Market Trend

Australian Alcohol Beverages Market DataRTD Alcohol Beverages Market Share by Company (2017)

New Zealand Alcohol Beverages Market Data

Imported Premium Beer Market Share by Brand (2017) Cider Market Share by Brand (2017)

YoY

YoY

(‘000 KL)

Source : Euromonitor Source : AZTECOn a volume basis

Source : AZTECOn a value basis

Source : AZTECOn a value basis

Beer Market TrendRTD Alcohol Beverages Market Share by Company (2017)(‘000 KL)

Source : Euromonitor Source : AZTECOn a value basis


Overseas Business (Southeast Asia Business : Malaysia / China Business)

Malaysia BusinessMalaysia Beverages Market Breakdown by Category(2017)

Malaysia Sales Breakdown by Business Category (2017)

On a value basis

China Business Asahi Brand Sales Volume Trend

Main Brands

Since 1994 when we entered China business, we have sold Super Dry, Beijing Beer, shochu, whiskey and spirits etc. through Asahi Beer (China) Investment Co., Ltd., our subsidiary in China, in the areas including Beijing, Shanghai, Dalian, Guangzhou, Shenzhen.We have also manufactured Super Dry in Beijing Beer Asahi Co., Ltd. and Shenzhen Tsingtao Beer Asahi Co., Ltd.From now on, we position the expansion of our presence in premium beer market in China as our strategy for growth. We aim to grow sustainably driven by facilitating sales of European premium brands, Peroni Nastro Azzuro and Pilsner Urquell in addition to Super Dry.

In November 2011, we entered Malaysian soft drinks market through purchasing Permanis Sdn. Bhd., the second-largest beverage company in Malaysia.In 2014, we purchased all of the issued shares in the

companies engaged in dairy business in Southeast Asia held by Etika International Holdings Limited and entered diary product business like condensed milk to strength the business foundation in Southeast soft drinks market.Now we launched Asahi brands like WONDA and Calpis

adjusted to the local taste in addition to Pepsi and Tropicana to enhance the business growth in Malaysian soft drinks market.In November 2016, we acquired the Pepsi bottling

business in Singapore.

Pepsi TropicanaWONDAMountain

Dew

Asahi Brand Pepsi Brand

CALPIS

Dairy Brand

GooddayDairy

Champ

Millions of cases (equivalent to 20×633ml bottles)

Source : EuromonitorOn a volume basis

Documents

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